Want to widhraw the warranty from bank
sahil
(Querist) 06 October 2015
This query is : Resolved
Hi,
i have an issue related to my property on which i need your help. my uncle has a firm on his wife name in which my father gives gurranty of his owned house to increase the credit limit in the UCO bank. my father is a second gurrentor. this limit is assiged on Two housed one is from my uncle and another one from my father end. we have no share in the firm. now some family dispute we would like to widhrawn the warranty of our house.how it can possible because my uncle is not responding properly and we want to widhrawn our house from the bank. Please give me suggestion.
Thanks
Anirudh
(Expert) 06 October 2015
Having given the guarantee (on the basis of the underlying asset), and the bank having advanced the money to your uncle, you will not be able to unilaterally withdraw such a guarantee. The bank will not allow you, unless the amount advanced is repaid to the bank to its satisfaction.
Your guarantee will escape, only when the bank varies the advancement of money, which was not envisaged at the time of giving guarantee or without your further consent.
So, your personal relationship or the vagaries of changing equations with your uncle has nothing to do with the guarantee once given.
If it is not so, then every one would come forward to give guarantee to a person, make the bank advance money, and then at one sweet morning say I withdraw the guarantee given! That is not how the guarantee works.
Guest
(Expert) 06 October 2015
Banks would Certainly appreciate If you Wish to Withdraw the Guarantee On Valid Grounds Like Leaving Abroad Etc But it would be Done Only If you were Replaced with A Valid and Equivalent Guarantor by the Borrower.Sort it out amicably with the Borrower and the Bank Seniors.
Rajendra K Goyal
(Expert) 06 October 2015
Guarantee given to Bank can not be withdrawn till all parties agree to it or full outstanding has been paid after due permission from the Bank.
Give clear notice (in writing with acknowledgement) to Bank to withdraw the guarantee from fixed date (say one month after the letter), instruct the Bank for not to allow any overdraft in this account (Interest or Bank charges allowed). Inform the Bank that the guarantor would not be liable for any withdrawal by the borrower after that date. Ask the Bank to inform borrower to arrange for another guarantee. Any credit in the account after date of notice would cover by Rule in Clayton's case and would diminish the liability of guarantor who noticed for withdrawal.
Any outstanding as on the date of withdrawal in the account need to be paid by the guarantor, if not paid by the borrower.
Guest
(Expert) 07 October 2015
Your father should not feel bound by his guarantee indefinitely. He should simply issue a legal notice to the bank that the guarntee should be treated as withdrawn from some specific date and they should take necessary precautions in reducing or extending any credit limit based on or beyond the guarantee of your uncle.
K.S.Srinivas
(Expert) 12 October 2015
Agreed with Sri Rajendra Goyal.
